Beef farmers around the world facing similar difficult market conditions

According to the latest analysis by Quality Meat Scotland (QMS), Scottish prime cattle prices were 12 per cent lower than last year after lacking direction for the majority of the summer and drifting lower in the past few weeks.

But Stuart Ashworth, QMS director of economics services, highlighted Scottish farmers were not the only ones facing difficult market conditions.

“American beef producers are currently receiving 7 per cent lower prices than a year ago while across the EU, average producer prices are 10 per cent lower for prime steers and 5 per cent lower for prime heifers,” he said.

However, currency was providing a boost in South America. While prices were down when quoted in US dollars, Brazilian prices in local currency were about 5 per cent higher.

Mr Ashworth added: “The dramatic weakening of the Argentinean currency over the past month means that in local currency, Argentinean producers currently benefit from prices nearly 50 per cent higher than a year ago.”

Australia was also benefiting from weaker exchange rates.

Unusually, producer prices in many places had slipped despite lower production with both EU and US production down.